In 2026, the Financial Conduct Authority (FCA) of the United Kingdom plans to implement a strict authorization process for cryptocurrency companies. The action is anticipated to change the regulatory environment for the digital asset sector and represents a substantial departure from the current anti-money laundering (AML) regulations.
Matthew Long, Director of Payments and Digital Assets at the FCA, revealed the plans in an interview with CoinDesk, stating that the impending “gateway regime” will serve as a new authorization framework for crypto businesses.
“We will have a gateway which will allow authorization. But obviously, we’ve got to go through those consultations, create those rules, and get the legislation for that to take place,” Long explained.
A More Stringent Regulatory Environment
Currently, firms such as Coinbase, Gemini, and Bitpanda are required to register with the FCA to comply with AML regulations. However, under the new regime, these companies will need to seek full authorization, adhering to a comprehensive set of rules governing various crypto-related services.
The FCA intends to release policy papers this year covering critical aspects such as stablecoins, trading platforms, staking, and prudential crypto exposure. The final framework will be enacted following the publication of these policies in 2026.
Since launching its AML register in 2020, the FCA has received 368 applications from crypto firms, yet only 50—approximately 14%—have been approved. Many of these companies may need to reapply under the forthcoming regulations.
Defining Regulated Activities
The upcoming legislation will clearly outline what constitutes a regulated activity. Firms engaging in these activities will be required to obtain authorization from the FCA.
A 2023 paper published by the former U.K. government suggested that regulated activities would likely encompass crypto issuance, fiat-referenced stablecoins, payment services, exchanges, and lending operations. However, stablecoins will no longer be governed under U.K. payments regulations, a shift confirmed by former Economic Secretary Tulip Siddiq in November. The FCA plans to release a consultation paper on stablecoin regulations later this year.
“What we’re doing in terms of the stablecoins is ensuring that we take the best from existing TradFi regulations while adapting to the unique nature of these assets,” Long said. “There isn’t anything that is exactly the same, so we’ve got to adjust our approach.”
Transition and Implementation
The FCA is still in the process of determining how crypto firms will transition into the new regime. While it remains unclear what steps already registered firms will need to take, Long noted that companies seeking additional permissions under the new framework will be required to apply accordingly.
“We’ll be communicating with firms about what the gateway will look like before it goes live,” Long stated. “Our intention is to bring it live as soon as humanly possible.”
The FCA is also closely monitoring regulatory developments across Europe and aligning its strategy with international standards set by the International Organization of Securities Commissions (IOSCO). IOSCO is expected to release a report soon assessing how countries are implementing its recommendations.
“It’s a case of understanding and looking for best practices,” Long added.
With the clock ticking toward 2026, the U.K.’s crypto industry faces a crucial period of preparation as it braces for a more tightly regulated future.
